How to Get Unpaid Wages Through WEPP After Your Employer Becomes Insolvent

Who qualifies for WEPP after an employer becomes insolvent?

The Wage Earner Protection Program, commonly called WEPP, is a federal program that pays eligible workers amounts they are owed when an employer enters a qualifying insolvency process.

You may be eligible when your employment has ended, your former employer is bankrupt, subject to receivership or another qualifying proceeding, and the employer owes you eligible wages, vacation pay, termination pay or severance pay.

Qualifying proceedings can include bankruptcy and receivership as well as certain proposals and Notices of Intention under the Bankruptcy and Insolvency Act, certain Companies' Creditors Arrangement Act proceedings and certain recognized foreign proceedings. Additional statutory conditions apply to these other proceedings.

What if the employer closed but is not bankrupt or in receivership?

A business closing or failing to pay employees is not enough by itself to qualify for WEPP. Service Canada states that if there is no bankruptcy, receivership or other qualifying insolvency proceeding, the employee is not eligible for the program.

In that situation, unpaid wages may instead need to be pursued through the labour standards regime that applies to the employment. If you worked in a federally regulated workplace, see Helpydo's guide to filing a federal complaint for unpaid wages, overtime or vacation pay.

What unpaid amounts can WEPP cover?

Eligible amounts can include wages such as salaries and commissions, compensation for services, gratuities accounted for by the employer, production bonuses and shift premiums. Eligible amounts can also include accrued vacation pay and properly incurred business disbursements of travelling salespeople.

Termination pay and severance pay can also qualify where the statutory eligibility conditions are met.

Which months of unpaid wages are eligible?

For wages other than termination and severance pay, the standard WEPP eligibility period is generally the six-month period before the bankruptcy, receivership or other qualifying insolvency proceeding.

The calculation can be different when the employer attempted a qualifying restructuring before the final WEPP event. In those cases, the period may begin six months before the first qualifying restructuring proceeding and extend to the bankruptcy, receivership or qualifying court determination.

Termination and severance pay are treated differently: the employment termination must occur during the applicable statutory period, which can extend until the trustee or receiver is discharged.

Who is excluded from WEPP?

The Wage Earner Protection Program Act excludes wages connected with periods during which the worker was an officer or director of the former employer, had a controlling interest in the business, occupied a managerial position within the meaning of the regulations, or was not dealing at arm's length with one of those persons.

Service Canada's employee guidance describes the excluded managerial category as managers whose responsibilities included making binding financial decisions affecting the business and/or binding decisions about whether wages would be paid.

Can you qualify if you are related to the employer?

Possibly. Being related to the employer does not automatically eliminate eligibility. Service Canada assesses whether, despite the relationship, you were treated in the same way as other employees.

How much can WEPP pay in 2026?

The Wage Earner Protection Program Act limits a payment to eligible wages owing, up to seven times the maximum weekly insurable earnings under the Employment Insurance Act.

For qualifying insolvency events on or after January 1, 2026, the maximum WEPP payment is $9,275. You do not automatically receive the maximum; the actual payment depends on the eligible amount owed to you.

If you already received part of the wages from the trustee or receiver, you may still qualify for WEPP for remaining eligible amounts, subject to the program maximum and other rules.

File your Proof of Claim with the trustee or receiver first

A Proof of Claim is required to receive a WEPP payment. It is the written claim in the insolvency proceeding confirming that the former employer owes you eligible wages.

The appointed trustee or receiver can help if you have not yet filed one. You can submit your WEPP application before Service Canada has received all trustee or receiver information, but this can delay processing. The trustee or receiver's confirmation that your Proof of Claim has been filed is required before payment can be issued.

If you disagree with the amounts shown on the Trustee/Receiver Information Form, Service Canada tells employees to discuss the issue with the trustee or receiver before applying.

When is the WEPP application deadline?

You generally must apply within 56 days of the latest applicable date among:

• the date of bankruptcy, receivership or qualifying court determination;
• the date your employment ended because of termination, resignation, retirement or expiry of the employment term; or
• the date a receiver terminated your employment.

If you apply after the 56-day period, you must explain the delay. Under the regulations and Service Canada guidance, an extension is limited to circumstances beyond your control that prevented you from applying within the prescribed period.

How to apply for WEPP online

Service Canada strongly encourages employees to apply online. The online application is a complete electronic application for the benefit, so online_available is yes.

When applying online, Service Canada requires your Social Insurance Number, name and date of birth and verifies that information against your SIN record as an identity-protection measure.

The application cannot be saved while partially completed. If you leave without submitting the completed application, you must start again and re-enter your information.

Service Canada also recommends direct deposit for approved payments.

Can you apply for WEPP on paper?

Yes. If you do not want to use the online application, you can obtain a paper WEPP application at a Service Canada Centre. Service Canada accepts WEPP applications by mail and cautions that mailed applications can take longer to result in payment.

WEPP correspondence and mailed documents are handled through the WEPP Processing Centre in Cornwall, Ontario, according to Service Canada's current contact instructions.

Can someone apply on behalf of another person?

A WEPP application may be made on behalf of a person who is medically incapacitated or by the legal representative of a deceased applicant.

The representative must complete and mail the Appointment of Representative form and include the documentation required by that form.

An applicant can separately authorize someone to communicate with WEPP by using the consent form provided by Service Canada. That authorization alone does not allow the person to submit the benefit application or change the applicant's address or banking information.

How long does Service Canada take to decide a WEPP claim?

Service Canada's current standard is to issue a decision letter within 35 days after it receives all information necessary to complete the file.

This is a service standard rather than a guaranteed processing time. Complex insolvency cases may take longer. Trustees and receivers generally have 45 days after the eligible insolvency event to provide Service Canada with the required employee and wage information, so the 35-day period may not begin immediately after you submit your own application.

What happens after you apply?

Service Canada sends a decision letter to both you and the trustee or receiver explaining whether a payment will be made. A denial is also communicated to both parties.

If approved, your payment cannot exceed your eligible wages or the applicable statutory maximum. For 2026, that maximum is $9,275.

Is a WEPP payment taxable?

Yes. WEPP payments are taxable income. Service Canada issues a T4A by the last day of February in the year after payment. Quebec residents also receive a Relevé 1.

Service Canada states that income tax is not deducted directly from the WEPP payment, so recipients must report the amount appropriately on their annual tax return.

Does WEPP affect Employment Insurance?

WEPP payments are considered earnings for Employment Insurance purposes. If you receive or have applied for EI, you must report the WEPP payment through the EI reporting system. Depending on the circumstances, the payment can affect your EI entitlement and can result in an EI overpayment.

What happens to your wage claim after WEPP pays you?

After a WEPP payment, the Government of Canada is subrogated to your rights against the employer's insolvency estate to the extent of the amount paid. In practical terms, the federal government becomes the creditor for that portion and can seek recovery through the insolvency proceeding.

You must tell Service Canada if you later receive additional eligible wages or take legal action to recover eligible wages after receiving WEPP. Service Canada provides an Employee Declaration form for reporting relevant amounts received after payment.

What if Service Canada denies your WEPP application?

If you disagree with Service Canada's eligibility decision, you may request a Ministerial review within 30 days from the date Service Canada informed you of its decision.

The review request can be submitted online. Service Canada also provides a paper WEPP Request for Review by Minister form. Unlike a later appeal, you may submit new information during the Ministerial review that could affect the decision.

Can you appeal after the Ministerial review?

Yes, but the scope is narrower. If you disagree with the Ministerial review decision, you may appeal to the Canada Industrial Relations Board only on a question of law or jurisdiction.

The written appeal generally must be filed within 60 calendar days after you are notified of the Minister's decision. The appeal is based on the existing record, so new facts or evidence cannot be introduced at this stage.

Common WEPP application mistakes to avoid

• Assuming that an employer's closure alone qualifies when there is no bankruptcy, receivership or other qualifying insolvency proceeding.
• Failing to submit a Proof of Claim to the trustee or receiver.
• Waiting beyond the 56-day application period without circumstances beyond your control explaining the delay.
• Disregarding an incorrect wage amount on the Trustee/Receiver Information Form instead of raising it with the trustee or receiver.
• Assuming all unpaid wages from any historical period are covered even though ordinary wages are subject to the WEPP eligibility period.
• Expecting the full $9,275 maximum when the eligible unpaid amount is lower.
• Leaving the online application before submitting it; partially completed applications cannot be saved.
• Failing to report a WEPP payment when you are receiving or have applied for Employment Insurance.
• Missing the 30-day deadline for a Ministerial review after an unfavourable Service Canada decision.
• Trying to introduce new evidence during a CIRB appeal, where the appeal is limited to the existing record and questions of law or jurisdiction.